BorgWarner (NYSE:BWA) Lowered to Neutral Rating by Bank of America

Key Points

• BorgWarner has been downgraded from a "buy" rating to a "neutral" rating by Bank of America, with a price target set at $46.00, indicating a potential upside of 5.13% from its current price.
• In contrast, Robert W. Baird and other firms have upgraded their ratings for BorgWarner, with price objectives ranging between $41.00 and $52.00, demonstrating mixed analyst sentiment.
• BorgWarner recently reported earnings that exceeded expectations, with a revenue of $3.64 billion for the quarter, marking a 1% increase compared to the previous year.

Bank of America lowered shares of BorgWarner (NYSE:BWA - Free Report) from a buy rating to a neutral rating in a research note published on Wednesday, MarketBeat reports. The firm currently has $46.00 price target on the auto parts company's stock, up from their prior price target of $41.00.

A number of other analysts also recently commented on the stock. Wall Street Zen upgraded shares of BorgWarner from a "buy" rating to a "strong-buy" rating in a report on Saturday, July 12th. Robert W. Baird raised BorgWarner from a "neutral" rating to an "outperform" rating and increased their price target for the company from $41.00 to $52.00 in a report on Wednesday, September 3rd. Evercore ISI lifted their price objective on BorgWarner from $38.00 to $42.00 and gave the stock an "outperform" rating in a research report on Monday, August 4th. JPMorgan Chase & Co. upped their target price on BorgWarner from $43.00 to $45.00 and gave the company an "overweight" rating in a report on Monday, August 4th. Finally, Barclays reiterated an "overweight" rating and set a $45.00 price target (up previously from $42.00) on shares of BorgWarner in a report on Wednesday, July 16th. One research analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating and five have assigned a Hold rating to the company's stock. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $41.21.

BorgWarner Price Performance

BorgWarner stock traded up $0.15 during midday trading on Wednesday, reaching $43.85. The company had a trading volume of 545,408 shares, compared to its average volume of 2,805,944. The company has a debt-to-equity ratio of 0.64, a current ratio of 2.02 and a quick ratio of 1.66. BorgWarner has a 12-month low of $24.40 and a 12-month high of $44.45. The company has a market capitalization of $9.49 billion, a P/E ratio of 46.62, a P/E/G ratio of 1.44 and a beta of 1.09. The firm's fifty day simple moving average is $39.37 and its 200-day simple moving average is $33.51.

BorgWarner (NYSE:BWA - Get Free Report) last announced its earnings results on Thursday, July 31st. The auto parts company reported $1.21 EPS for the quarter, beating analysts' consensus estimates of $1.06 by $0.15. BorgWarner had a return on equity of 16.17% and a net margin of 1.50%.The business had revenue of $3.64 billion during the quarter, compared to analysts' expectations of $3.56 billion. During the same quarter in the prior year, the firm earned $1.19 earnings per share. The business's revenue was up 1.0% compared to the same quarter last year. BorgWarner has set its FY 2025 guidance at 4.450-4.65 EPS. As a group, equities analysts anticipate that BorgWarner will post 4.28 EPS for the current year.

BorgWarner Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, September 15th. Investors of record on Tuesday, September 2nd will be issued a $0.17 dividend. This is an increase from BorgWarner's previous quarterly dividend of $0.11. The ex-dividend date is Tuesday, September 2nd. This represents a $0.68 annualized dividend and a yield of 1.6%. BorgWarner's payout ratio is presently 72.34%.

BorgWarner announced that its Board of Directors has authorized a share repurchase plan on Thursday, July 31st that authorizes the company to buyback $1.00 billion in shares. This buyback authorization authorizes the auto parts company to repurchase up to 13.2% of its stock through open market purchases. Stock buyback plans are typically an indication that the company's board of directors believes its shares are undervalued.

Insider Transactions at BorgWarner

In related news, VP Isabelle Mckenzie sold 2,500 shares of the stock in a transaction that occurred on Tuesday, August 12th. The shares were sold at an average price of $40.01, for a total transaction of $100,025.00. Following the completion of the transaction, the vice president owned 55,945 shares of the company's stock, valued at approximately $2,238,359.45. This trade represents a 4.28% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Alexis P. Michas sold 8,772 shares of the business's stock in a transaction that occurred on Tuesday, September 2nd. The shares were sold at an average price of $42.31, for a total value of $371,143.32. Following the completion of the sale, the director directly owned 78,903 shares in the company, valued at approximately $3,338,385.93. The trade was a 10.01% decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders have sold 31,272 shares of company stock worth $1,263,318. 0.45% of the stock is currently owned by insiders.

Institutional Trading of BorgWarner

Several hedge funds have recently made changes to their positions in BWA. Dimensional Fund Advisors LP lifted its holdings in BorgWarner by 2.5% during the 1st quarter. Dimensional Fund Advisors LP now owns 11,568,627 shares of the auto parts company's stock worth $331,429,000 after buying an additional 284,587 shares in the last quarter. State Street Corp raised its stake in shares of BorgWarner by 5.3% in the second quarter. State Street Corp now owns 7,633,760 shares of the auto parts company's stock valued at $255,578,000 after acquiring an additional 380,942 shares in the last quarter. LSV Asset Management boosted its holdings in BorgWarner by 36.7% in the first quarter. LSV Asset Management now owns 5,889,080 shares of the auto parts company's stock valued at $168,722,000 after purchasing an additional 1,580,935 shares during the period. Turtle Creek Asset Management Inc. grew its stake in BorgWarner by 7.0% during the 4th quarter. Turtle Creek Asset Management Inc. now owns 4,078,780 shares of the auto parts company's stock worth $129,664,000 after purchasing an additional 267,250 shares in the last quarter. Finally, American Century Companies Inc. increased its holdings in BorgWarner by 1.6% during the 2nd quarter. American Century Companies Inc. now owns 3,774,828 shares of the auto parts company's stock worth $126,381,000 after purchasing an additional 58,252 shares during the period. Institutional investors and hedge funds own 95.67% of the company's stock.

BorgWarner Company Profile

BorgWarner Inc, together with its subsidiaries, provides solutions for combustion, hybrid, and electric vehicles worldwide. It offers turbochargers, eBoosters, eTurbos, timing systems, emissions systems, thermal systems, gasoline ignition technology, smart remote actuators, powertrain sensors, cabin heaters, battery modules and systems, battery heaters, and battery charging.